Tax for new high earners could rise in Jersey

The proposals will not effect current high value residents, who will continue to pay the current £170,000 per year and 1% above

Tax contributions could rise for new high-earning islanders in Jersey if legislation is approved.

Currently, "high value resident" (HVR) islanders pay £170,000 tax on the first £850,000 they earn, and then 1% on any worldwide income above it.

The Minister for Treasury and Resources proposed an increase from £170,000 to £250,000 for new HVRs.

Deputy Ian Gorst also proposed raising the minimum property price for new HVRs from £1.75m to £3.5m.

It will also be expected that applicants have a net worth of "at least £10m", excluding their place of residence.

The proposals will not effect current HVRs, who will continue to pay the current £170,000 per year and 1% above.

The Chief Minister can grant residential status to HVRs if she believes their living in Jersey "will have a social or economic benefit, and is in the best interests of the community".

'Generate wealth'

The government said ministers had asked for "more work to be done to better identify the levels of charitable giving" by HVRs.

Chief Minister, Deputy Kristina Moore, said new measures were a "modest increase" in contributions to the public purse.

"This Government welcomes people who generate wealth and contribute to sustainable economic growth, whether home-grown or those who want to make Jersey their home and become part of our community," she said.

The proposals come following a review by the Housing and Work Advisory Group (HWAG), chaired by Ms Moore.

Mr Gorst said he was "pleased to support the HWAG, ensuring that new residents contribute even more to the public purse".

He said that current HVR's "already deliver significant benefits to Jersey, both economically and socially, and are very much welcome as part of our diverse community".

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